Natural Gas Exports: A Boost The U.S. Economy Needs

A liquefied natural gas tanker from Russia arrives at a gas storage station near Tokyo. Natural gas exporters need facilities in which the gas is... View Enlarged Image

The boom in U.S. natural gas production should be igniting a market explosion across the world. But opponents of open trade unwisely want to snuff out progress.

Production of natural gas in this country has swelled from 18.9 million cubic feet in 2005 to more than 24 million cubic feet in 2011. It's a sharp jump, reminiscent of big gains made from 1950 to 1971.

Without this boom, due in large part to a drilling and extraction method called hydraulic fracturing — or fracking — our grim jobs market would be even bleaker. Employment in oil and gas extraction grew 26.2% from January 2008 through January 2013, while the number of nonfarm payroll employees overall fell 2.3%, according to the Bureau of Labor Statistics.

If not for fracking, the jobless rate would be far higher than the already too-high 7.9%.

The thoughtful Washington Post columnist and business writer Robert Samuelson calls the "shale-gas boom" the "crown jewel of the disappointing economic recovery."

This nation has a growing glut of natural gas. So why not sell the surplus abroad?

After all, trade, when it's free — or at least close to it — makes everyone involved better off.

It's not like there are no markets for natural gas out there. Gas prices are three to five times higher overseas, so "customers," reports Steven Mufson in the Washington Post, "are lining up."

Shipping natural gas isn't like moving cars or electronics equipment. A company can't simply say "let's put more product out the door." Transportation is a bit more complicated. Exporters need facilities in which the gas is liquified and then pumped into tankers for transit.

As of late last year, at least 15 companies were waiting for the government to OK applications to build these structures.

Among those standing in their way is Sen. Ron Wyden, the Oregon Democrat, who, speaking for many, says he wants to be sure gas exports won't harm consumers and manufacturers, both of whom are enjoying cheap gas due to growing supplies.

Wyden's Energy and Natural Resources Committee is scheduled to meet Tuesday to "consider issues surrounding natural gas, including environmental implications, exports and impacts on the economy." Don't expect him to give companies hoping to increase exports a free ride.

Expect him, instead, to be deferential to a trade group called America's Energy Advantage, a collection of manufacturers that want the government to restrict natural gas exports because they believe exporting will increase their gas costs.

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